CLSA sees the weakness in engineering, construction stocks as an opportunity for investors

NCC, a prominent infrastructure company, has a diverse order book, and it is crucial to examine its various components. Notably, the Karnataka government's contributions account for 11 percent of NCC's total order book.

However, CLSA emphasises the importance of monitoring jointly funded projects such as the Bengaluru Metro project, which receives funding from multiple sources, including the state government, central government, and external organisations.

However, CLSA suggests that these joint-funding projects are unlikely to be impacted significantly by the recent news.

Based on its analysis, CLSA suggests that investors should consider accumulating NCC stocks following the weakness observed in the market on Tuesday. The findings indicate that the impact on NCC's joint funding projects, including the Metro, is expected to be minimal. Thus, CLSA sees the current situation as an opportunity to benefit from the market's reaction.